The central bank also revised its 2019 growth outlook to 2.2 percent from its previous forecast of 2.5 percent made in April

또한, 한은은 2019년 경제성장률 전망치를 지난 4월에 발표한 2.5%에서 2.2%로 하향 조정했다.

The surprise rate reduction, the first since June 2016, came as Asia's fourth-largest economy faces growing downside risks due to a series of headwinds, such as a prolonged U.S.-China trade feud and Japan's export restrictions on Korea coupled with sluggish exports and investment here.

The central bank had kept the benchmark rate unchanged since November, when it hiked it by 25 basis points to 1.75 percent.

한은은 작년 11월 기준금리를 1.75%로 0.25% 인상한 이후 이를 그대로 유지해왔다.

The BOK said there has been a growing need for a more accommodative stance following escalating trade disputes and a delayed recovery in the semiconductor sector.

한은은 무역분쟁의 격화와 반도체 부문의 회복 지연에 따라, 보다 수용적인 자세가 필요하다고 밝혔다.

It added that the newly emerging row between Korea and Japan over Tokyo's export restrictions on key materials needed for the manufacture of semiconductors and display panels was weighing on the Korean economy.

Japan supplies up to 90 percent of the key resource materials worldwide and Korea makes about 60 percent of the world's chips.

일본은 전 세계 주요 소재의 약 90%를 공급하고, 한국은 전 세계 반도체의 약 60%를 생산하고 있다.

"The outcome of the U.S.-China trade dispute, which continues to remain uncertain, and the fresh one between Korea and Japan are posing major risks to the country's economic growth," BOK Governor Lee Ju-yeol said at a press conference in Seoul.

Sung Tae-yoon, an economist at Yonsei University, said the country will continue to experience a prolonged slowdown.

성태윤 연세대 경제학과 교수는 한국이 장기간의 경기 침체를 겪을 것이라고 전했다.

"The outlook downgrade and the key rate cut were well-warranted by the worse-than-expected slowdown in investment and exports. If the trade dispute with Japan escalates, the BOK may consider another rate cut within this year," he said.

The central bank also revised its 2019 growth outlook to 2.2 percent from its previous forecast of 2.5 percent made in April

또한, 한은은 2019년 경제성장률 전망치를 지난 4월에 발표한 2.5%에서 2.2%로 하향 조정했다.

The surprise rate reduction, the first since June 2016, came as Asia's fourth-largest economy faces growing downside risks due to a series of headwinds, such as a prolonged U.S.-China trade feud and Japan's export restrictions on Korea coupled with sluggish exports and investment here.

The central bank had kept the benchmark rate unchanged since November, when it hiked it by 25 basis points to 1.75 percent.

한은은 작년 11월 기준금리를 1.75%로 0.25% 인상한 이후 이를 그대로 유지해왔다.

The BOK said there has been a growing need for a more accommodative stance following escalating trade disputes and a delayed recovery in the semiconductor sector.

한은은 무역분쟁의 격화와 반도체 부문의 회복 지연에 따라, 보다 수용적인 자세가 필요하다고 밝혔다.

It added that the newly emerging row between Korea and Japan over Tokyo's export restrictions on key materials needed for the manufacture of semiconductors and display panels was weighing on the Korean economy.

Japan supplies up to 90 percent of the key resource materials worldwide and Korea makes about 60 percent of the world's chips.

일본은 전 세계 주요 소재의 약 90%를 공급하고, 한국은 전 세계 반도체의 약 60%를 생산하고 있다.

"The outcome of the U.S.-China trade dispute, which continues to remain uncertain, and the fresh one between Korea and Japan are posing major risks to the country's economic growth," BOK Governor Lee Ju-yeol said at a press conference in Seoul.

Sung Tae-yoon, an economist at Yonsei University, said the country will continue to experience a prolonged slowdown.

성태윤 연세대 경제학과 교수는 한국이 장기간의 경기 침체를 겪을 것이라고 전했다.

"The outlook downgrade and the key rate cut were well-warranted by the worse-than-expected slowdown in investment and exports. If the trade dispute with Japan escalates, the BOK may consider another rate cut within this year," he said.